ECB Concerned About Risks of Inflation Both Below and Above Target Level
The Governor of the Banque de France, Villeroy de Galhau, stated that the European Central Bank (ECB) is closely monitoring the risks of inflation both below and above the target level of 2%. At a recent meeting with journalists, he emphasized that while inflation levels in the euro area have decreased, significant uncertainties remain. Villeroy noted that rising prices for energy and food could lead to an overall increase in inflation.
At the same time, the central bank also acknowledges the possibility of facing low inflation again. According to Villeroy, economic data indicate that the recovery of demand may not be sufficient to support sustainable price growth. He stressed that it is essential to maintain flexibility in monetary policy to be prepared for any unexpected economic changes.
Villeroy stated that the ECB will continue to monitor current economic indicators and approach further actions cautiously to ensure inflation remains within the target level. He also added that any decisions will be made carefully, considering all possible consequences for economic stability in the euro area.
Overall, Villeroy's comments highlight the need for a cautious approach amid global economic uncertainty and exposure to risks of both lower and higher inflation levels.
